VA Loans are a powerful tool for Hawaii Veterans because they are backed by the U.S. Department of Veterans and they extend lenient qualifying requirements.
Some of those benefits include 100 percent financing* and no mortgage insurance requirement. These are some of the more well-known aspects of VA Loans.
At Element Mortgage, we are all about educating Veterans in Hawaii about the VA Loan benefits. Here are some of the lesser-known aspects of VA Loans.
There isn’t a pre-payment penalty
If you decide to pay the loan off early by selling your home, regardless of the timeframe from when you purchased the property, you will not be charged with a penalty payment. In addition, refinancing comes with no restrictions.
Low closing costs
Closing costs are lower with VA Loans than they are with other types of loan programs. It is part of the program to restrict how much can be charged for closing costs, which allows Veterans to use the cash they saved on other things.
They are assumable
Many VA Loans can be transferred to a buyer if that buyer is able to utilize the VA Loan benefit. This is what is referred to as being “assumable.” This is helpful when you go to sell the home because if you have a rate locked in that is lower than rates of that time, then it can be a more desirable purchase for a buyer.
Various versions available
You can obtain a VA Loan in an adjustable rate or fixed rate and it can be used to purchase anything from a new home, condo, duplex and other types of real estate. In addition, they can be utilized to refinance.
Options with the funding fee
There is an upfront payment requirement called a funding fee for VA Loans, however, this fee can be rolled up into the loan. What this does is prevent the Veteran from having to produce any upfront cash for this payment.
If you are a Veteran and looking to take advantage of your well-deserved VA Loan benefit in Oahu, don’t hesitate to reach out to one of our mortgage consultants!
*Qualifying factors may apply. Example VA: Loan amount $300,000, 0% down, monthly payment without taxes and insurance $1,844.77 APR 4.432%.